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Release Date: 04/12/2004
Release Number: 04-622-KAN
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Kansas City, Missouri - The U.S. Department of
Labor has sued the owner of Ver-Sa-Til Associates, Inc. in Chanhassen,
Minnesota, for failing to timely forward employee contributions owed to
the company’s profit sharing plan. |
“Trustees
of a 401(k) plan have a responsibility to ensure that the assets of the
plan are used solely to benefit participants. One of the most important
responsibilities is putting money from workers’ wages into their 401(k)
accounts on time,” said Robert Webber, Acting Director of the Employee
Benefits Security Administration’s (EBSA) Kansas City regional office. |
The
lawsuit alleges Darrell Tamosuinas violated his duties as a trustee under
the Employee Retirement Income Security Act (ERISA). The defendant
allegedly failed to cause Ver-Sa-Til to timely forward to the plan
employee contributions from January 1999 to April 2002 and allowed the
company to retain the contributions. |
The
department is asking the court to require Tamosuinas to restore any losses
with interest and to offset the trustee’s plan account to reimburse the
losses. The suit also asks that Tamosuinas correct any transaction
prohibited by law and be permanently barred from serving plans in the
future. |
Ver-Sa-Til was a machine shop that produced products
for the defense industry. The profit sharing plan at one time covered as
many as 96 participants and had $360,783.47 in assets as of January 2004. |
Employers
with similar problems, who are not yet the subject of an investigation by
EBSA, may be eligible to participate in the department's Voluntary
Fiduciary Correction Program (VFCP). Participation in the VFCP requires
employers to make workers whole but allows them to avoid EBSA enforcement
actions and civil penalties as well as any applicable excise taxes. For
more information about the VFCP see www.dol.gov/ebsa. |
In
fiscal year 2003, EBSA achieved record monetary results of $1.4 billion
related to the pension, 401(k), health and other benefits of millions of
American workers and their families. This case was investigated by the
department’s regional EBSA office in Kansas City. Employers and workers
can contact the Regional Office at 816.426.5131 or EBSA’s toll free
number, 1.866.444.EBSA (3272), for help with problems relating to
private-sector pension and health plans. |
(Chao
v Tamosuinas)
Civil Action No. 04-1330 RHK/AJB |
U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |